The USA is one of the largest financial powerhouses in the world, after all, it’s supposedly the land of the free. However, this doesn’t mean that exporters can simply import products without several barriers in the way, much like any other country. To make the process a little easier, we have recommended five different suggestions that you need to keep in mind before you consider exporting to the USA.
Why is it important to follow these tips?
Before we go any further and look at the five tips to help, you must understand why you follow these tips. As you can probably guess, if you attempt to import goods into the United States without the correct preparation, you will likely be denied access, potentially have items taken away from you, or simply increase the time of importation severely. Above all, you are also at risk of breaking the law, especially if you attempt to import items illegally through unofficial approaches that bypass border control.
Classify your goods
Before you even consider importing and exporting to the USA, all items must be classified correctly. If you are exporting from the United Kingdom, then it’s best to use the UK Trade Tariff so that all goods being exported are identified clearly before they go through export control. The same goes for the USA, where it’s recommended to ascertain yourself with their custom duties so that your exporting process is as smooth as possible. Failing to do so could result in your items being rejected, especially if they aren’t recognised appropriately by the customs broker, making it vital that they are identified appropriately before being exported.
Know the Incoterms
Also known as the International Commercial Terms, these are the contractual rules that govern the movement of international freight. If you are looking to export to the US, then it’s vital that you take full responsibility for the goods being shipped to the US, otherwise you are at risk of fines. For reference, this is set by the Chamber of Commerce, though the US Department of Commerce also plays a role to ensure that their specific needs are met.
Three notable arrangements come under the Incoterms, which are as follows:
● Carrier Paid To - The seller of the producer, the exporter, will be fully responsible for the payment of the freight to the importing country, at which point the buyer accepts full responsibility once the goods are in the hands of the carrier.
● EXW - Abbreviated for Ex Works, the buyer is fully responsible for the whole process from the supplier’s facilities to the final destination.
● Free Carrier - The final of the three most notable arrangements entails that the exporter arranges most of the shipping stages from the exporting country, where the recipient accepts full liability once the goods arrive in the location of exporting, such as the docks or terminal.
Familiarise with the costs
We have already mentioned the US’s custom duties, but now you must keep in mind the different prices that will be associated with exporting to the US. Their custom duties are one of the examples of costs, but the transportation, legal fees and all else all contribute towards the overall cost. However, the most important tip to keep in mind is ensuring that all proceedings are carried out with the right currency. It might sound like a genuine mistake, but exports are known to not take into consideration the exchange rate differences, for example from GBP to USD.
Get your licenses prepared
Although the US Customs and Border Protection doesn't necessarily require the exporter to have a license or permit to import into the country, several other agencies might require a license, authority or any other legal documents. Often, these licenses depend on the goods being exported/imported into the USA, as not all products require such approval, which is why the best approach for this to contact the US Exporting Licenses website.
Consider an Importer of Record for the USA
To keep things organised, one of the best approaches is to contact an Importer of Records. Their entire role is focused on handling all of the legal proceedings at the destination of exportation, so in this case, the United States. As part of their job, the Importer of Records in the USA will be responsible for all the payment of duties, fines, classification and certification.
Additionally, if you have any issues with the exporting process to begin with, you can also contact an Exporter of Record, where they will help with the process in ensuring all documentation and related aspects are completed for the initial exporting phase. In some cases, this is often more essential than the IOR, primarily because they are responsible if any shipments never arrive at the given location.
If the idea of using an Importer of Record sounds good to you, then why not contact us? Here at Blackthorne, we have gained a glowing reputation across the globe for our services that can help you to export into the USA with ease. Specialising specifically within the IT industry, we can guarantee that all your IT logistics are exported and imported into the United States with the correct authority.